The Residential Tenancies Act, 2006, will come into force on January 31, 2007.  Landlords should take the time to review the legislation to learn about the changes to their rights and responsibilities.  Follow http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/06r17_e.htm to view a copy of the Act.

The Residential Tenancies Act will result in many changes for both landlords and tenants, the following are highlights:

 Rent Increases

• Vacancy de-control will continue
• Annual Guideline Increases based on Ontario Consumer Price Index
• Application Fees for Above Guideline Increases to be reduced
• Capital Expenditures will be narrowly defined
• Above guideline increases capped at 3% for a maximum of 3 years
• The provision for "maximum" rent ends
• Costs no longer borne provision means that once a capital item has been paid for the rent will decrease to reflect that component
• No rent increases permitted where outstanding maintenance issues exist

• Rents can be reduced one year after a smart meter is installed to reflect the change in the composition of rent (this is for tenancies where electricity is included in the rent). The one year period is required to collect data related to the tenant’s average electricity consumption so the rent can be reduced to reflect that amount.
• Tenants can file an application with the Landlord Tenant Board to require landlords to provide energy efficient appliances
• Incoming tenants to be provided with information related to electricity consumption

• Landlords will have the right to enter the premises to inspect for maintenance (on notice) and will no longer have to reserve this right in the tenancy agreement
• Realtors, with landlord’s authorization, can give written notice to show the rental unit on landlord’s behalf and show to prospective purchasers without the landlord being present

• Own Use grounds for termination expanded to permit termination for "care giver" for owner, owner’s spouse, child or parent in same residential complex
• Fast-track termination for disturbances when owner occupied and three or fewer rental units
• Fast-track provision for extensive damage aimed at grow house operations
• Once in tenancy provision where the tenant can have eviction stopped if s/he pays all arrears plus costs and sheriff’s fees
• Belongings - once a tenant is evicted the landlord will have to make belongings available for retrieval up to 72 hours rather than the current 48 hours

• Ontario Rental Housing Tribunal to be renamed Landlord and Tenant Board
• Default Orders will be eliminated and all applications will require a hearing
• Tenants will be permitted to raise maintenance issues in non-payment applications without prior notice to the landlord
• Eviction order may be issued to landlord as a result of tenant’s application that asks for termination

• Improved client services for small-scale landlords
• Landlords required to provide incoming tenants with printed material related to their rights
• Heat will be added to the definition of vital services with dates specified for when it must be provided
• Increase maximum penalties to $25,000 for individuals and $100,000 for corporations
• The definition of tenant will be expanded to include spouse and possibly children.

The Ministry of Municipal Affairs and Housing has developed a brochure detailing some of the changes that will result from the Residential Tenancies Act.

Background

On May 3, 2006, the Minister of Municipal Affairs and Housing introduced Bill 109, the long awaited legislation aimed at replacing the Tenant Protection Act.  Second Reading of the Bill concluded on May 17^th and it was then referred to the Standing Committee on General Government for public hearing and clause by clause review.

Landlord’s Self-Help Centre secured an opportunity to make an oral submission to the Standing Committee on May 31, 2006. Glenn Sheridan; CLW and Harry Fine; Director, LSHC Board of Directors, made the submission on behalf of the Centre and focussed on how the provisions of the Bill will negatively impact the small-scale landlord community. The Centre also developed a written submission which we believe represented the concerns and views of our members and client constituency.

The Standing Committee on General Government held three days of public hearing and one day on clause by clause by clause review.  The Committee reported back to the House on June 8, 2006 with a variety of amendments to the Bill.  Third reading of Bill 109 was completed on June 20, 2006 and it received Royal Assent on June 22, 2006. 

LSHC offered comments on a selection of proposed Regulations for which the Ministry of Municipal Affairs and Housing invited comments.

The new legislation will be proclaimed into force on January 31, 2007. 

Landlord's Self-Help Centre will offer workshops for our clients and members in spring 2007 to discuss various changes.